Use this calculator to see if it's the right time for you to refinance your home. This calculator will give you a 'traditional' breakeven analysis, as well as an "enhanced' refinance analysis.
A 'traditional' breakeven analysis calculates all costs associated with a refinancing and divides it by the monthly payment savings achieved by refinancing. Although the 'traditional' method does a good job evaluating when you might make your money back, it ignores one key factor - your new mortgage will probably now have a longer term than your existing one.
The 'enhanced' refinance analysis will change your monthly payment on your refinanced loan slightly until the refinanced loan pays off at the same time as the existing mortgage. Your monthly payment will be slightly higher than the 'traditional' refinance, but your mortgage will pay off faster and you will reduce your overall interest paid.